Dcit Central Circle-2(2) Chennai, ... vs Thangamani Perumal Gounder, ... on 4 August, 2025
- 27 - ITA Nos.628 & 629/Chny/2025
and proved when some liability is to be fastened in respect of such
transactions. This decision was rendered with reference to section 34 of the
Indian Evidence Act. Though the technical rules of Evidence Act are not
strictly applicable to Income Tax proceedings, the legal principle laid down
by the Hon'ble Supreme Court in these cases that independent
corroborative evidence is required in respect of entries in regular books of
account when a liability is sought to be fastened based on such entries
would be broadly applicable to income tax proceedings also in cases where
tax liability is sought to be fastened on an assessee based on entries found
in the notebooks/loose sheets seized from a third party. When the tax
liability was sought to be fastened on the assessee based on the said
seized material from thirty party, before making addition in the assessment
orders for AYs 2015-16 and 2016-17, the Assessing Officer was duty bound
to prove the correctness of the entries in the seized material with
independent corroborative evidence and admittedly no such corroborative
evidence has been brought on record and relied upon by the AO in the
assessment orders.